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April 19, 2009

Loved or tolerated?

Owners and managers often have an exaggerated sense of what their customers think about their business. In my experience there are a number of reasons for this.

First, most owners and managers are hard working, contentious and dedicated. They put in the time, energy and effort day-in and day-out. Therefore, they think that their customers should recognize, acknowledge and appreciate their considerable contributions.

Second, most owners and managers keep a close eye on the local competition and offer similar products and services, programs and classes at a comparable price point. Therefore, they believe they are offering what customers want.

Finally, owners and managers have a tendency to believe all the positive things that they hear about their business and minimize, excuse or disregard the negative things (a cognitive bias known as confirmation bias).

While most businesses like to think of themselves as being loved the sad truth is that for the most part customers merely tolerate the businesses they deal with until something better comes along.

Research from Bain and Company indicates that between 60% and 80% of defectors (disloyal customers) characterize themselves as ‘satisfied’ or ‘very satisfied’ just before they defect.

Customers don’t love you for you… they love you for what you can do for them. They don’t care about you they care about them. It’s not all about you it’s all about them.

Most customers won’t bother to tell you why they are leaving… there are rarely any second chances. The challenge for you is to get it right the first time and to keep getting it right every time. No easy feat.

The trick is this… don’t believe your own hype, even if you truly believe you are absolutely loved by your customers act like you are barely tolerated and keep striving to earn their love.

When you do earn their love (i.e. when they love what you do for them) only then will you earn their loyalty.